Pseudonymous analyst Altcoin Sherpa tells his 187,900 Twitter followers that Ethereum could see a 54% dip from current prices if another major event rocks the crypto markets, such as a prominent firm filing bankruptcy.
He says there is still support above the $900 level, but that the $500 range awaits below.
“ETH: Some high timeframe charts. I think if some big player like GBTC (Grayscale Bitcoin Trust) gets sold off, we’re going to see something like $500-$700 Ethereum. I think $500 should be a decent place to bid if things go to shit based on psychological (number) alone; but there’s a long way to go (before) then.”
At time of writing, Ethereum is trading hands at $1,110.
Next, Altcoin Sherpa looks at one of Ethereum’s top rivals, SOL. He says Solana could collapse to $3 if current price levels don’t hold.
“SOL: If these current areas fall, $3 is the next significant area up IMO (in my opinion). Long term I think that FTX/SBF (Sam Bankman-Fried) getting destroyed is probably a net good for the ecosystem but short term wise, this is still pretty disastrous.”
At time of writing, Solana is changing hands at $11.73 and has been hit hard by the collapse of crypto exchange FTX. The firm’s CEO Sam Bankman-Fried was one of the ecosystem’s top investors and is likely being forced to liquidate his SOL holdings as bankruptcy proceedings unfold.
Altcoin Sherpa also weighs in on Bitcoin, saying that while there could be lower for BTC to go, longer-term opportunities are starting to present themselves.
“High time frame levels. I think that $16,000/$14,000/$12,000 are all great levels to buy for the longer term and most investors would do fine just DCA-ing (dollar-cost averaging) into those three levels. Put a 30% buy at each of these and then walk away for a few years to a lot more.”
At time of writing, Bitcoin is changing hands at $16,086.
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